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How to Fight Terrorism: Alternatives to Deterrence

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Author Info
Bruno S. Frey
Simon Luechinger

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Abstract

Deterrence has been a crucial element in fighting terrorism, both in actual politics and rational choice analyses of terrorism. But there are superior strategies to deterrence. One is to make terrorist attacks less attractive. Another to raise the opportunity cost – rather than the material cost – to terrorists. These alternative strategies effectively dissuade potential terrorists. The strategies suggested here build on the “benevolence” system and tend to produce a positive sum game among the interacting parties. In contrast, the deterrence system is based on “threats” and tends to produce a negative sum game interaction.

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Paper provided by Institute for Empirical Research in Economics - IEW in its series IEW - Working Papers with number iewwp137.

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Handle: RePEc:zur:iewwpx:137

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Related research
Keywords: Terrorism Deterrence Decentralisation Opportunity Cost Rational Choice Motivation

Other versions of this item:

Find related papers by JEL classification:
D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances
H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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  1. Tilman Brück, 2005. "An Economic Analysis Of Security Policies," Defence and Peace Economics, Taylor and Francis Journals, vol. 16(5), pages 375-389, October. [Downloadable!] (restricted)
    Other versions:
  2. Krug, B. & Reinmoeller, P., 2003. "The Hidden Cost of Ubiquity: Globalisation and Terrorism," Research Paper ERS-2003-062-ORG Revision, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni. [Downloadable!]
  3. Tim Krieger & Daniel Meierrieks, 2008. "What causes terrorism?," Working Papers 12, University of Paderborn, CIE Center for International Economics. [Downloadable!]
  4. Vicki Bier & Santiago Oliveros & Larry Samuelson, 2006. "Choosing What to Protect: Strategic Defensive Allocation against an Unknown Attacker," Levine's Bibliography 321307000000000158, UCLA Department of Economics. [Downloadable!]
    Other versions:
  5. Bruno S. Frey & Dominic Rohner, 2005. "Protecting Cultural Monuments Against Terrorism," IEW - Working Papers iewwp257, Institute for Empirical Research in Economics - IEW. [Downloadable!]
    Other versions:
  6. Axel Dreher & Justina A. V. Fischer, 2008. "Decentralization as a disincentive for transnational terror? An empirical test," Working papers 08-185, KOF Swiss Economic Institute, ETH Zurich. [Downloadable!]
    Other versions:
  7. Bruno Frey & Simon Luechinger & Alois Stutzer, 2004. "Valuing Public Goods: The Life Satisfation Approach," CESifo Working Paper Series CESifo Working Paper No. , CESifo GmbH. [Downloadable!]
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  8. Jan Schnellenbach, 2005. "Appeasing Nihilists? Some Economic Thoughts on Reducing Terrorist Activity," Law and Economics 0507001, EconWPA. [Downloadable!]
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  9. Bruno S. Frey & Simon Luechinger, . "Measuring Terrorism," IEW - Working Papers iewwp171, Institute for Empirical Research in Economics - IEW. [Downloadable!]
  10. João Ricardo Faria & Daniel Arce M., 2005. "Terror Support And Recruitment," Defence and Peace Economics, Taylor and Francis Journals, vol. 16(4), pages 263-273, August. [Downloadable!] (restricted)
  11. Peter Phillips, 2005. "THE 'PRICE’ OF TERRORISM," Defence and Peace Economics, Taylor and Francis Journals, vol. 16(6), pages 403-414, December. [Downloadable!] (restricted)
  12. Peter Hilsenrath, 2005. "Health Policy As Counter-Terrorism: Health Services And The Palestinians," Defence and Peace Economics, Taylor and Francis Journals, vol. 16(5), pages 365-374, October. [Downloadable!] (restricted)
  13. Paul Dunne & Maria del Carmen Garcia-Alonso & Paul Levine Author Name: Ron Smith, 2004. "Managing Asymmetric Conflict," Studies in Economics 0411, Department of Economics, University of Kent. [Downloadable!]
    Other versions:
  14. Entorf, 2005. "Islamistischer Terrorismus: Analysen, Entwicklungen und Anti- Terror-Politik aus der Sicht ökonomischer Forschung," General Economics and Teaching 0508001, EconWPA. [Downloadable!]
    Other versions:
  15. Axel Dreher & Martin Gassebner & Lars-H. R. Siemers, 2007. "Does Terror Threaten Human Rights? Evidence from Panel Data," Working papers 07-156, KOF Swiss Economic Institute, ETH Zurich. [Downloadable!]
    Other versions:
  16. Charles Anderton & John Carter, 2005. "On Rational Choice Theory And The Study Of Terrorism," Defence and Peace Economics, Taylor and Francis Journals, vol. 16(4), pages 275-282, August. [Downloadable!] (restricted)
  17. Charles Anderton & John Carter, 2004. "Applying Intermediate Microeconomics to Terrorism," Working Papers 0412, College of the Holy Cross, Department of Economics. [Downloadable!]
  18. Franz Dietrich, 2004. "Terrorism Prevention: A General Model," Others 0404001, EconWPA. [Downloadable!]
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